Millennials are More Likely to Make their Fortune from Crypto than from Inheritance
According to a new report, 95% of wealthy cryptocurrency entrepreneurs have made their fortune on their own. This comes as no surprise, crypto news has found that 2 out of 5 millennials in the US have invested in crypto. The report also claims that self-made high-net-worth individuals globally seem to be more interested in investing in crypto such as Bitcoin compared to those who have inherited most of their wealth. Learn more by landing on this page about this matter
The report is based on a survey involving people with a net worth of at least $5 million. This includes people who have a general interest in the crypto market and those who are professionally involved in this market.
Wealthy Crypto Entrepreneurs
The report shows that around 94% of all wealthy crypto entrepreneurs made their wealth using their own initiatives and without the help of any form of inheritance. When it came to people with a general interest in cryptocurrency, almost 90% were found to be self-made millionaires. A mere 0.5% relied on their inheritance. According to the report, 84% of the generally wealthy people were self-made.
All this meant that self-made wealthy people were much more likely to invest in assets like crypto that carry high volatility and risk than other forms of assets.
The crypto market has created a large percentage of the wealthy population in recent times.
Almost 83% of Millennial Millionaires have Cryptocurrency
According to another report published in December of last year, around 83% of millennial millionaires owned some form of cryptocurrency. These millionaires have also been found to have plans for buying more cryptos in 2022.
Some of the additional findings of the survey were as follows:
● Over 50% of these investors have invested 50% of their assets in the crypto
● Almost a third of them have 75% of their overall investments in crypto
● No more than 25% of GEN X millionaires have so far invested in crypto
The percentage of baby boomer millionaires with crypto investments is much lower at 4%.
Young Millionaires are Comfortable with Volatility & Risk
This research shows that the new generation of millionaires is more comfortable than their previous counterparts with assets that offer a high degree of volatility and risk. According to most millionaire millennials, volatile cryptocurrencies make an excellent bets for them.
Besides having deep investments in blockchain-based assets, these millionaires are further interested in investing more into crypto. The survey made the following discoveries with regard to their investment plans for 2022:
● 48% of millennials want to grow their crypto investments
● 39% want to maintain the same amount of cryptos as they already do
● Only 6% want to reduce their investments in this technology
Millennials & Gen Z Relying on Crypto for their Retirement Strategy
Another survey in January this year found that 54% of millennials and 56% of Gen Z adults were adding crypto or NFTs to their retirement strategy. The young have a lot more time to wait and make changes to their strategy before they retire. This allows them more room for taking risks with their investment strategy. This ‘time’ is seen as a major reason why young investors are taking the risks with crypto.
Risks of a Crypto Strategy for Retirement
There seem to be endless tales of people investing in crypto before cashing in big money. However, these stories cover only a tiny amount of the population. There are more investors who have lost their money chasing quick and seemingly simple profits in this highly volatile market. Anyone seeking to build their retirement strategy around cryptocurrency must consider the associated risks.
Consider Bitcoin for example. It is simply the most popular crypto coin that exists today. It was created in 2008 and crossed the $1 mark only in 2011. 10 years later, it was priced close to $68,000. However, it has since continued to fall and currently trades at around $39,000. While there are predictions of this digital coin touching $100,000 in the near future, there is no certainty that it will.
However, there are traditional assets such as gold and stocks that haven’t shown as much volatility. From 2000 to 2019, the S&P 500 offered an average annual return of 8.87%. This figure was 13.6% from 2010 to 2020. Between March 2020 and August 2021, the S&P gained 100% from its rock bottom. So, when making your investment or retirement strategy, it is important to take the assets’ risks into account.